Two days ago I attended my broker's "Panel of Experts Forum." Our 4 top-producing agents generously gave us 2 hours of their time so we could benefit from their advice. I was struck by the differences in their approach:
- One agent has an elaborate computer system set up which helps him with his cold calling. He uses 4 computers which dial the numbers for him, display the data (small but important detail when you're calling an average of 40 folks an hour) and do everything except get him coffee. Cold Calling is his thing.
- Another agent stated that 90% of his business is generated from referrals. He concentrates only on his past clients. His past client database is 247 names, and growing, and he sends out mailings twice a month to make sure he "stays in their face." He never calls a FSBO or an Expired. Referrals are his thing.
- The third speaker was the only woman (this alone inspired me to do more) and dubs herself the "Mail Out Queen." She mails out thousands of postcards (some warm but mostly cold market) each month. She has other marketing methods but predominantly direct mailings are her thing.
- The last speaker was the newest to real estate. He's been licensed 2.5 years and has had his success working with Buyers. The few listings he's had have been helpful in obtaining even more buyers. He claims he's never lost a single call to one of his listings. If he didn't sell them that house, he sold them another. I'm not that successful in my conversion rate, but I can keep trying. This man is not afraid to go the extra mile for his clients, literally! A Tampa builder granted him an award for most homes sold and we're in Miami, 4 plus hours away! Bending over backwards for his client has been his thing. He admits to aiming to keep things closer to home this year.
It was great to see that all success is not cut out of the same cloth. We don't have to feel bad when one person states that they'd never try our approach as theirs works better. What works great for some may turn out dismally for another. Finding your niche and doing it well is key.
With that said however, I have to comment on their similarities:
- Systems. Have your systems in place. Success needs to be duplicatable.
- Dedication. Just because we can goof off whenever we want doesn't mean we should. It reminds me of something I heard in one of my first real estate seminars, "The best thing in real estate is not having somebody telling you what to do. The worst thing in real estate is not having somebody telling you what to do." Have a schedule and stick with it.
- Education and designations. Keep learning. Even beyond the minimum required CE hours. Earn your designations. Not only do they teach you a lot, they help you network with agents nationwide. Can you say referral fee boys and girls?
- Organization. Stay organized. We all know it's crucial. Some are great at this. Others not. Definitely worth bringing it up to snuff if you fall into the latter category.
- Technical knowledge. Not talking IT here. Just technical real estate knowledge. Know what you are doing and know it well. During our Q&A time I was struck by how many agents in the room did not know that an unlicensed assistant can not show property here in Florida. It is against the law. Hel-Oh! Some agents argued this point and our broker had to step in. hmmmm, maybe that 63 hour prelicensing course needs to be extended?
- Passion. Love what you are doing. It makes a difference. It shows to all and makes your days worth looking forward to.
- Prioritize. Remember the wife and kids? (feel free to fill in your own significant others here) They're the reason you're doing this. Make sure you leave work behind regulary and spend time with them and your own alone time doing things you love. Someone who is burnt out is of no use to anyone.
- Last but certainly not least. Honesty. The only way to do things. Who wants something coming back to bite them in the butt anyway?
I try to attend classes and forums such as this one at least twice a month. It's always a reality check for me. Staying in touch with other agents and walking away with even just one new thing to try is something I look forward to. Active Rain makes that goal even easier now!
Maggie Dokic, SFR is a licensed real estate broker in the state of Florida selling residential real estate in Miami, Palmetto Bay, Pinecrest, Coral Gables, Gables by the Sea, High Pines, the Redland and other select areas of SW Miami-Dade County.
Maggie has earned her SFR certification to be able to better serve the needs of her customers in today's non-traditional real estate market. SFR is a Short Sale, Foreclosure Resource Specialist. Designees have been trained to understand the highly specialized options available to Sellers facing short sales & foreclosures and Buyers looking to buy them.
For more information on our local real estate market, or to see or sell a home in Miami, Palmetto Bay, Pinecrest, Coral Gables or the Redland, visit my Miami Real Estate blog or contact me at Maggie (at) TheBlogThatAteMiami (dot) com.
The opinions expressed herein, are those of the author, and not necessarily of Prudential Florida Realty.
Maggie - I think you got it right. It's a combination of all those things that make great agents. Of course the old-timers did not go into detail about what they did when they started, so the better idea was the new guy. In my opinion, whatever it is that you choose to concentrate on, cold-calling, direct mailings, buyers, sellers, expired listings, FSBO's, etc......you need to be consistent, and you need to do it with passion. Great pointers.
PASSION! isnt's that appropriate!
Maggie, thank you for sharing this. In some markets, a successful agent may have to pursue more than one of the specific lines that were working for each of these people. But, making the choice and not just letting it happen to us is empowering.
I have seen a real estate office where Saturdays could be feast or famine. Whoever drew the Saturday morning floor day just dreaded it. As office manager, my council was to CHOOSE to work the Saturday, do not just let it happen to you because at the end of the year, from your experience, you know it pays off. But when you don't CHOOSE to make the several mile drive into the office, the whole experience turns into non-productive chaos.
The same real estate venue NEVER got any education, except the sleeper classes to keep their license; they weren't empowered by information, they were constantly pushing the envelope on legal due to ignorance, they were exhausted by a puzzling office and they HAD to go to the sleepers because they didn't have any accumulated hours of continuing ed.
Any people business is difficult in that it demands a lot of energy output. And most input has to come from within -- the PASSION. Setting out a plan instead of setting traps for oneself changes the dynamic of the energy output.
Great Points. We all have our 'niche' target marketing that works for us. I say keep doing what works. Too many agents out there are looking for some 'magic pill' to guarantee success & there just isn't one.
It's called working & doing a good job.
Great article Maggie.
As a Loan Originator, I can tell you the same thing is happening on our side of the table. The real lesson may be that "cookie cutter" approaches are not the way to being top producers. You can buy every program out there, but the way to success is to do what works for you. It may include parts of other folks programs and approaches, but success come from making the marketing and sales approaches your own.
Thanks for the verification of that idea/reality through your experience.
Terry
Maggie,
What you have concluded from the four different approaches is an excellent summary of how to succeed in this difficult business. You have to do what you are most confortable doing and you must do it well. I've never put a lot of stock in any of those expensive "How I made ten zillion $$$$ in real estate" seminars. It's not that the system is bad - it's just that it may well not be the right one for me.
WTG Maggie...great post....all the items in your list are essential for success in real estate....I wish I had been told that and had a mentor to guide me through it all back in the late 80s when I first got started.....
BUT....we all learn as time goes on...right??
=-D
Hi Maggie,
Great job, good info and overall anaylsis on your part.
The other comments you're received have all been valuable, here's someting from my perspective.
Even if someone is fairly new in the business, maybe a couple of years, they probably already have a few people that refer you more often than others, right? They can be past clients, strategic alliances or networking partners for example.
From experience, I understand my personal referrals come from a small core group of contacts. The same 80/20 rule we hear about so often. While keeping in touch by mailing to all (about 615 people on a regular basis) my major focus is my top 120. Those who continually keep me in referrals, are my major priority. Staying in the "flow" (more than just mailings) FORD calls, client events (as small as 12 at a time or maybe larger), ball game, etc, etc...I can't ever do enough for this group, they have kept me in business through thick-and-thin.
A "top 120" can also be a top 10, 20, top 40 and so on, it's that absolute top of the list who keep you going.
Some of the benefits:
Don't get me wrong, you still need to be prepared, even better prepared than others, you owe that to the person who referred you in the first place, it's a reflection on them.
So with that said, I wouldn't give up on farming, expireds, by owners if they are working for you, but I certainly suggest you consider the referral based business plan. A good read, Raving Fans, it's cheap and online.
One more thing, if you're marketing by mail, include your city leaders, i.e. mayor, council, local community leaders. I know some, yet not all in my area, yet they still receive my mailings. These folks can be important at times to your business. When our local mayor was interviewed by CBS Evening News on housing issues, they also needed a Realtor interview. and I got the call. I just got lucky on that one.
Best of luck and keep up the great work!
Lynda Eisenmann, Broker-Owner, CRS, CRB, GRI, SRES, e-PRO and PH-Parrotthead
Great post Maggie. It is good to be reminded of the many different ways we conduct our businesses.
Lynda, great idea-including city officials in your mailers, I have several in mine also.
Different strokes for different folks as they say. This applies for most everything. We all have strengths and weaknesses so try all the ideas and see which one you are better at and then expand on it. All the ideas are good and tools to use, try them all!
Patricia Aulson/REALTOR/Seacoast NH/ME & MA
www.patricia4realestate.com
Wow. I took half a day off to cheer my kids on and look what happened. I got a featured post even. That's my first. Thanks guys.
Thanks for stopping by. I appreciate all your comments.
Ines - you're right. The more experienced agents said nothing about the times when they were "paying their dues." I'm still paying mine!
Suzi - can you imagine if we all did the same thing? We'd be shoving each other to get more elbow room, not to mention the monotony.
Dan - congratulations on knowing what works for you. You obviously track your success. I'm fairly new and am all over the place, but tracking all my efforts so next year I can concentrate on my most productive.
Tony - two excellent key points. Knowing what works and sticking with it. You apparently do!
JudyAnn, you've obviously been in the business long enough to have seen it all. Settling for mediocrity is OK for some but when we're capable of so much better, I often wonder why? Thanks for your insight.
Susan - what a concept, actually working you say? =) That magic pill would be easy to swallow but would not be very satisfying in the end. You sound as though you already know that. Congratulations.
Roberta - thanks for your comments. I'm sending my broker a link to the blog so she can see for herself the impact her actions have. Coincidentally I ran into a fellow agent today (both her daughter and mine cheer for the same squad) and upon hearing her disappointment at missing the forum I told her I'd send her a link so she could read what I wrote about it. I love ActiveRain!
Terry - you're so right about the many programs. I'm half ashamed to say that I've spent a small fortune on several. I'm thinking of starting a "sharing library" of some sort to help other agents out before they plunk the money down. (without violating any copyright laws of course).
Dan - there is one program that's still catching my attention each time I see the ad. But because of what I wrote to Terry above I've held back on buying it. I'll add your comment to my arsenal next time I feel tempted. Thanks =)
Alexander - thanks! You made a point which I forgot to mention. I'll go back and include it. A mentor is so valuable! Finding someone with experience willing to take you under their wing is an immeasurable value.
Lynda - wow. thanks for the great input. This is exactly what I love about this great community on Active Rain. You've got some great stuff there.
Gary - thanks for stopping by and for your kind words!
Laurie - thanks for stopping by. I appreciate it! I've been admiring your great signature and comments around AR and now I have ithem right here on my own blog. thanks By the way, how'd you create it? I'm still fooling around with my profile and such.
Patricia - you're so right. Most things can be applied to other areas of our lives if we're smart and utilize them. And capitalizing on our strengths is such a great tool (assuming we'vve identified them) Thanks for pointing that out!
Blessings to all.
Maggie,
Thank you. I was messing around with signatures on my puter quite a while back and managed to make a few, but to be honest with you , I really don't remember. I am not that good with this kind of stuff, I think I got lucky that day. Maybe somebody else here can tell you how. I do remember that I actually used my mouse to do it.
Great learning here, Maggie. Thanks for posting. I always learn new things from more senior folks in the business - it helps think about other ways to get to the top and not continue doing things that are not working. But it also shows there are different ways to be successful.
Thanks again.
Jeff
Hi Maggie,
Thanks for the nice comments. You mentioned to Dan you had one program you were still thinking about, would you care to share it with the others? There are so many caring and sharing people in AR, perhaps someone else has already experienced it. I love hearing what's working for others.
And Laurie, I too love your sig, it's a real stand out, great work!
Lynda Eisenmann
It is so good to hear their different approaches. Cold calling is how I was initially trained. And I was doing very poorly at it. It jut was not my thing. Mailings are working so well for me. I have found my niche and I am working it. When we work with our strengths, success is inevitable.
And I found the similar behaviors you noted inspiring. I printed them and put them on the side of my computer. They are helping to keep me focused...and organized.
Sharon
Laurie - I'll see if I can ask my "techie" friend how to make it. The fact that you used your mouse is interesting. I also love the ActiveRain lookalike signatures which Jeff Turner and Mark Flanders created (and wrote about somewhere). They're too cool. I still haven't tried creating one. Hopefully soon.
Jeff - You're so right. The seniors have much good advice to dole out. I'm lucky that my office is next to one of the top producers. I chat with him on my way in and he's always generous with his tips.
Cindy - thanks! and thanks for stopping by.
Lynda - I'm so glad you asked. It's Craig Proctor's system. I keep seeing his advertising everywhere and I am sooooooo tempted. Has anyone had any first hand experience with it? Actually, now you've made me use my noodle. I'm going to search AR and see if anyone's posted about it. Gotta love this pooling of resources, no?
Sharon - wow. Thanks. That's great to think that something I wrote might be of help to someone. I appreciate your comment. :-) Can I ask about your mailings? frequency? type? do you have a farm? if so, how did you choose it? Those things always interest me. I mail out too (once a month) and although I did look at the stats for my farm area and they were adequate, I chose it because I lived there for 4 years and knew the neighborhood well. I've yet to get a listing from my mailouts but I've only been at it 5 months and the general rule of thumb is at least 10 months to see results. When I have time, I like to walk my farm and introduce myself. Easier said than done!
Maggie,
My good friend Marlene B. has been to see Craig, she's also on AR, I'll let her know you're interested. I"m sure there are many others out there.
Lynda Eisenmann
I have taken a variety of training and marketing courses and I think your post does capture the essence of what can make a difference. Two points seems to be repeated over and over again, however -- have a system -- and contact with past clients-
We have been sending customized postcards to our clients and it is amazing how we start to get calls shortly thereafter.
In all cases, it does take some effort to make the rain fall!
Regards,
Joan
Maggie,
Before investing in an expensive seminar or program, ask yourself if they are telling you "how they do it" (like those quoted in your blog) or are they telling you "how they did it". The difference is quite significant. Market conditions rapidly change and yesterdays big winners often become todays also rans! What worked last year may or may not work as well this year.
And then there are those "nothing down" and "flipping" gurus on late night paid programming. If it's so darn easy, why the heck aren't they doing it themselves? Or at least, paying others and getting a piece of the action? BTW one was investigated and it was found that the "happy on-screen users" were really paid actors and had never even tried to use the "no-down" program! In another case, they turned out to be family members of the program seller!
Dan
Great post Maggie,
There is something to be learn from everyone that's for sure.
Maggie,
Glad for you.
I have a question.
"Another agent stated that 90% of his business is generated from referrals. He concentrates only on his past clients. His past client database is 247 names, and growing, and he sends out mailings twice a month to make sure he "stays in their face." He never calls a FSBO or an Expired. Referrals are his thing".
This person`s data base is rather small, he calls no FSBO~S or Expireds. Amazing. How is a Top Producer?
Jon - I'm working on improving my conversion rate as well. If I have any referrals for SC in your area, of course I will consider you!
Lynda - I appreciate it. The kids were competing again today so I haven't done a stitch of work. I must check it out on AR.
Joan - having so many resources has been a bit of a blessing and a curse for me. I love the many courses but it's so hard to take time out from "working" to actually finish all the ones I've bought. A 36 hour day would be nice =)
Dan - solid point. Shifting markets can call for different strategies. The sales pitch I keep seeing for that particular course is good though. I am so tempted to get it.
Paul - I feel the same way. I'm loving this place!
Mario - thanks for your kind words and thanks for stopping by!
Scott - when he threw that number out there, I was surprised myself. He's very good at keeping only his best clients on there and spending his money on them. One of the courses I did refers to the quality of the list being much more important than the quantity. My own list (bear in mind I'm in RE full time less than a year) is about 638 (last mailing's number) and that includes about 300 in my farm area who don't know me personally (except for the few I've had time to introduce myself to). I've not been mailing long enough to be able to tell whether it's working yet, but I intend to work on the quality of my names as well.
Scott,
It's much easier than you may think. The 2006 NAR seller survey stated that the highest single method (51%) used to find an agent was by direct referral. Another 30% had used the agent before. That's a total of 4 out of every 5 sellers. If you are not getting referrals and do not have a past client base you only have access to little more than 20% of the potential sellers since it was also reported that a whopping 69% of all sellers only talked to one agent. These numbers illustrate why it is so difficult for new agents to make a go in this business. Unfortunately, the odds are overwhelming against you unless you have a strong referral network in place.
So do the math. Using the above percentages and a past client base of 247 (which, of course, is only one source for referrals), I'd say he's getting one heck of a lot of business!! There are many agents making well over $150,000 a year here in the Bay Area from referrals and past clients alone.
Here's an added thought - Based on my 30+ years as a broker I can state with some certainty that 20% of the agents have 80% of the market locked up and the remaining 80% of agents are fighting, really fighting, for the last 20% of the market. This may sound somewhat bleak, but if you truly intend to suceed you need to fully appreciate the odds against your success.
Dan
Nice article... there are many methods and all of them have a detailed system and the agent's consistency... wow!! Computers that do everything except for bringing coffee...I want one of those!!!
Dan,
Thank You for your response.
The odds of 247 names making a dent in your Real Estate business is small. I do however believe that a data base of clients work.
Our data base is well over 5500 names of clients ( 10 years of being in the business) we send out Newsletters,Postcards etc monthly.This helps to keep our name out there.Normally, we get a 1-2% response from this data base which I consider great for our business!
Wish you the very best!
Scott
Scott,
Here's another thought on this. He may be using a good number of those 247 past clients as "bird dogs". When I started in this business many years ago, we used to give a crisp one hundred dollar bill (about a thousand in todays commission dollars) to a "bird dog" for a lead that came to fruition. I recent wrote a blog on AR which discusses this in more detail.
While RESPA has made "bird dog" payments illegal, there is nothing wrong with taking a past client to an expensive restaurant and "wine-ing and dining" them in a lavish way as a thank you for "past business." I'm sure that a few client "bird dogs" could generate a heck of a lot more leads than monthly mailings that the NAR Seller Survey states were only effective with 3% of those who actually sold (meaning, of course, that the overall effective rate of periodic mailings is much, much less). This is in stark contrast to the fact that one-half of all sellers last year used a referred agent.
As you well know, it's the quality - and not the quantity of the data base that matters.
Dan
Scott,
Dan has made a valid point. Depending on "how deep" a person goes into relationships with past clients, even a relative small group can be like a gold mine. It's about building true relationships. Mine had kept me going for years and value each and every one of them.
Lynda Eisenmann, Broker/Owner, CRB, CRS, GRI, SRES, e-Pro, PH
Hi again guys. I was out of town and not connected. It felt like I was off life support!
Thanks for all your comments. I agree with Lynda and Dan in that relationships can make the difference between a good list and one that doesn't produce. Craig Forte has a program I love and I periodically receive interview cd's of agents using his systems (real agents). I am often struck at the relatively small number of names on their mailing lists. There are agents achieving phenomenal success (their words, not mine) and their lists range from the upper 200's to upper 500's. Again, they stress "cleaning up their lists" regularly to make sure they're mailing to their very best only.
By the way, maybe it's the definition of "top producer" creating the difference in opinions? The gentleman with the 247 names is a top producer in our office not our area. But still, at an average of 60 transactions closed a year, it's an admirable amount even if there are other brokerages doing more.
Hi Maggie.. sorry I'm late,.. but you know this Miami traffic! ;) This post definitley deserved its star, so congrats on that!! very good point and well written.. it just flows!
I'm glad to see that different strokes for different folks applies to RE as well. We all have our strengths and weaknesses, so once we learn how to play off what works for us, there is not stopping us! I hope you dont mind that I print this to make it handy and to highlight some ideas for constatn reminder. thanks for this post Maggie! :)